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Sri Lanka to issue new currency notes series next month

Sri Lanka’s banking watchdog- Central Bank of Sri Lanka (CBSL) is to release the twelfth Series of Sri Lankan Currency Notes including the brand new Rs. 5,000 note, next month. This means that the value of current highest denomination will be increased by 250 percent to Rs. 5,000. The new series is designed under a theme of development and prosperity and feature enhanced security measures, and will be available for circulation from February 2011, the Central Bank officials said at the launch of its Roadmap for 2011.

“We want to stress that the printing of the new Rs.5,000 note is not a sign that inflation will go up,” Deputy Governor Dharma Dheerasinghe told reporters.
Rs.2,000 note which was the latest introduced by the CBSL on October 17, 2006 while the Rs.5000 multi colour coin which was the latest coin to be launched in view of the Central Bank’s 60th anniversary.

This heritage series currency note are introduced in view of the shift in demand for high denomination currency notes coupled with changes in price levels and increase in per capita GDP in the country in recent times.

Central Bank justifying its action said that money circulation had increased by nearly Rs.50 billion after the end of war as a result of the surge of cash-based transactions in the island’s North and East.

Despite a booming economy country’s inflation shot up to 7 percent from a 3.1 percent recorded in February 2010, surpassing Central Bank Governor Ajith Nivard Cabraal’s earlier inflation forecast of between 5 to 6 percent.